KUALA LUMPUR (Feb 15): The government has decided to postpone RM5.7 billion worth of rural development projects under the Jana Wibawa scheme to review whether they were awarded in accordance with procurement process and governance requirements set by the Treasury.

“The Ministry of Finance has instructed me to postpone the implementation of these projects because letters of acceptance have already been issued. The procurement was carried out via selective tenders or direct negotiation,” said Deputy Prime Minister Datuk Seri Ahmad Zahid Hamidi.

“The project was already given the letter of acceptance. It is the Prime Minister’s (Datuk Seri Anwar Ibrahim) policy as finance minister to see whether the procurement procedure and the governance of any expenditure are in accordance with the stipulated rules and regulations,” he said.

Ahmad Zahid, who is also the minister for rural and regional development, said that despite the postponement, the ministry has sought several other methods to empower state and district level offices and agencies to carry out rural development projects according to their needs.

“We will not compromise in terms of developing infrastructure in rural areas," he said, adding that in Sabah and Sarawak, state-level agencies have been given the authority to implement projects below RM50 million.

“We will prioritise areas, roads, bridges and houses affected by floods. I have requested officials at the ministry and agencies to implement [these development projects] immediately,” Ahmad Zahid told reporters at the Parliament building on Wednesday (Feb 15).

In a parliamentary written reply dated Dec 16, 2021, then-minister of finance Tengku Datuk Seri Zafrul Aziz said the Jana Wibawa or 'Program Jana Ekonomi Pemerkasaan Kontraktor Bumiputera Berwibawa' is a strategic programme that was introduced to expedite project execution to spur the nation's economic recovery post Covid-19 pandemic.

The programme was also intended to improve the capacity of Bumiptera contractors in the construction industry to be more resilient and competitive.  

To facilitate the implementation of the projects under Jana Wibawa, the government would resort to either pre-qualification tenders or direct award, while adhering to the guidelines of the direct award procurement process as stated under the relevant treasury circular, Zafrul said at the time.

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